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Restaurant Brands receives takeover offer

Restaurant Brands New Zealand is in discussions with Finaccess Capital after receiving a proposal for the acquisition of up to 75 per cent of its shares, by way of a partial takeover offer.

While there is no guarantee the takeover will happen, Finacess, a company that focuses on the global consumer retail sector, has offered to pay NZ$9.45 ($8.68) cash per share.

The offer comes after Restaurant Brands posted a 7 per cent increase in group net profit after tax in the first half of FY19 to NZ$20.4 million ($18.73 million), up from NZ$19.1 million ($17.53 million) in the prior corresponding period.

Total brand sales in the half reached NZ$431 million ($395.65 million), an 11.6 per cent increase of NZ$44.9 million ($41.22 million) compared to the first half of FY18.

KFC Australia contributed $103.4 million in sales, a 28.8 per cent increase over the previous year, primarily as a result of the acquisition of a further 13 stores and the opening of one new store during the period.

Across New Zealand, the company’s businesses saw a 2.4 per cent increase in sales to NZ$244.9 million ($224.82 million), driven by the continued strong performance of the KFC New Zealand business, which saw a 5.2 per cent increase in sales over the period.

Pizza Hut New Zealand saw a smaller sales increase of 1.7 per cent to NZ$55.8 million ($54.22 million), while Starbucks and Carl’s Jr. both saw a fall in sales of 2.8 per cent and 7.1 per cent respectively.

Looking forward, the group expects to deliver between NZ$43-45 million ($39-41 million) net profit after tax in FY19.

This story originally appeared on sister-site Inside Retail New Zealand.

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